Vale (NYSE: VALE) has officially reopened the Capanema iron ore mine in Brazil after a 22-year halt as part of a 67-billion real (US$12.2-billion) investment strategy through 2030.
The reactivated Capanema unit in Ouro Preto, Minas Gerais state, will operate without using water in processing, generating no tailings and removing the need for dams, Vale said on Thursday. The project cost 5.2 billion reals ($950 million).
The shift toward dry processing has been a central goal for Vale following the deadly collapses of two tailings dams in Minas Gerais in 2015 and 2019, disasters that killed hundreds of people and caused widespread environmental devastation.
The majority of Vale’s upcoming investments in Minas Gerais will be directed toward expanding dry tailings stacking and filtration solutions. The goal is to reduce the reliance on dams in the state from 30% today to 20%.
Vale shares upticked 0.4% to close at $10.26 apiece on Thursday in New York for a market capitalization of $46.5 billion.
Boost to production
The mine is expected to add around 15 million tonnes per year to Vale’s iron ore output, supporting the company’s production forecast of 340 million to 360 million annual tones next year.
“Capanema reinforces our commitment to a more responsible mining process – minimally invasive and driven by technology and innovation for optimal resource use and decarbonization,” Vale CEO Gustavo Pimenta said in a release.
Vale employs around 63,000 people, including contractors, and its operations account for roughly 3.5% of Minas Gerais’ GDP. Over the past two years, the state has been responsible for nearly 45% of Vale’s total iron ore production.
Be the first to comment on "Vale to spend $12.2B in Brazil as Capanema reopens"